This trading bot buys stocks bought by US politicians; Here’s how it did in H1 2024
The post This trading bot buys stocks bought by US politicians; Here’s how it did in H1 2024 appeared on BitcoinEthereumNews.com.
The extensive trading activity of numerous elected officials in the U.S. has raised suspicion in recent years and led to increased calls for tighter control and restrictions on how politicians can invest. A side effect of the trend – best exemplified by the incredibly lucrative investments made by the likes of former speaker Nancy Pelosi – has been the increased popularity of platforms tracking the officials’ stock market moves. Among these, few are recognizable as a platform known on X as Quiver Quantitative. Quiver is equally known for drawing attention to the most suspicious and interesting trades made by politicians and for offering a string of trading strategies hinged on their own activities. Congress outperforms the U.S. stock market The most prominent of the politician-tracking trading bots is the so-called Congress Buys strategy. As the name implies, this particular strategy invests in the 10 most-bought stocks by U.S. politicians. It has recorded stellar growth since backtesting began in 2020 and boasts a 45.83% compound annual growth rate (CAGR). It has, as Finbold reported in February, however, found only middling success at the very start of 2024 and actually underperformed compared to the S&P 500 benchmark index. Things had changed sharply by June. At the time of publication on June 17, Congress Buys was a substantial 19.18% in the green. Congress Buys 6-month performance. Source: Quiver Quantitative In comparison, the two biggest benchmark indices, the S&P 500 and the Dow Jones Industrial Average (DJIA), are up 14.52% and 2.32%, respectively. S&P 500 and DJIA YTD performance. Source: Google This is the most successful trader in Congress in 2024 Nonetheless, Congress Buys may not be a strategy for everyone given that its Sharpe Ratio – a technical analysis (TA) tool that seeks to measure if the extra risk taken on by investors…
Filed under: News - @ June 17, 2024 10:26 am